I would take off the ceiling molding and use it to "beef up" the molding at the floor.

Thanks pcmom1! Leave it wood?
I was so insistent on ditching the wood but been watching Nicole Curtis on Rehab Addict and trying to figure out if I can work/live with what we have ;)

Umm...how is it you envision using the crown moulding on the base? In my experience (26 years now) even taking down moulding and putting it back in the same place is difficult to get right, wherever it comes from. We have done loads of historic restoration where every piece is numbered and stored for re-installation...and we mostly just made some new to match for one room and used the extra to make up the difference. There is always a difference. Crown moulding is cut on a double bevel. The short point won't be long enough to make the corner of the room if it is set flat on the wall. GIANT gaps. I think just removing the crown, fixing the drywall and painting will give the room a fresh look. Look to add some color to the walls to mitigate the contrast of the light/white walls and the dark trim.

You certainly know more than I! I have seen where adding just a small molding to an existing molding really gives a rich look. And since he mentioned budget, I though "reuse". But my suggestion might create a nightmare project!

It is rare I would say this but I think I would leave all the moulding until you grow a money tree, and paint the walls and the moulding all the same color. I say this because these mouldings look small.

I'm not sure where you live because the color of wood is indigenous to the area. However, I would paint all your wooden trim in ultra white to match your brick fireplace, especially since it's already been painted. Include all your wood trim: at the ceiling, around your door jambs, the floorboards and your doors. This will tie your room together for a more cohesive look. You may also want to group your like item accessories on your mantel. This gives them more impact. Right now you have them symmetrical. I would also choose a softer white for your walls, such as Navaho White. This will bring a nice contrast to all the bright white in the room.

Ok, I should have been a little clear...this isn't our stuff! Hahaha I pulled the pic from Zillow to get started win my list of to dos going. Thanks for being so nice about the awful decor, thinking it was mine hahaha